Lots of copyright laws don't apply in Sweden. I am planning to buy a server in Sweden because I am tired of dealing with copyright reports on my US-based server.

Also, if you have it in your TOS that states that your clients are 100% liable then you won't be liable.

The host is required to remove the illegal content.

Just the other day someone ordered a hosting account on a stolen paypal account, so I had to return the money to the paypal owner or else my paypal account would be suspended.

Then I dealt with the scammer and reported them to their ISP.